LEAWOOD, Kan. - Dec. 14, 2011 - Tortoise Pipeline & Energy Fund, Inc. (NYSE: TTP) today announced it has fully invested its initial public offering and leverage proceeds.
Last month, the fund declared its first quarterly distribution of $0.40625 per share, to be paid on March 1, 2012 to stockholders of record on Feb. 22, 2012. This full run-rate distribution achieves the fund's target of a 6.5 percent annualized yield on its $25 public offering price and reflects a 6.9 percent annualized yield on yesterday's closing price.
Investment of Proceeds
The fund has met its investment targets ahead of schedule, with portfolio holdings in North American pipeline companies that transport natural gas, natural gas liquids, crude oil and refined products, and to a lesser extent, in other energy infrastructure companies. As a flow-through regulated investment company, the fund may efficiently purchase securities of traditional pipeline corporations along with master limited partnerships.
"We are pleased to announce that we have reached full investment of TTP," said Tortoise Capital Advisors' Managing Director, Terry Matlack. "Abundant domestic supply and technology improvements are driving a new chapter in North American energy. TTP provides access to the sizeable $400 billion North American pipeline network, with the differentiated ability to efficiently target the pipeline growth opportunities that we expect to accompany such dynamics."
The table below indicates the fund's top ten holdings following Dec. 12, 2011's market close. The fund will provide further detail on the portfolio through its quarterly financial reports.
TTP has finalized the funding of its leverage, including an aggregated total of $49 million senior unsecured notes (Senior Notes) and $16 million of Mandatory Redeemable Preferred Shares (MRP Shares). Including its credit facility, TTP's leverage is in line with its initial target of approximately 25 percent of total assets, with the majority at fixed rates.
Year-End Conference Call
The fund will host a conference call on Dec. 15, 2011 at 4:30 p.m. EST, to discuss current U.S. energy infrastructure industry market conditions and TTP's investment highlights. Participants can access the conference call by dialing (800) 762-8779. The replay access code is 4487035. The call will also be webcast in a listen-only format. A link to the webcast will be accessible at www.tortoiseadvisors.com.
A replay of the call will be available at 6 p.m. EST on Dec. 15, 2011 and continuing until 11:59 p.m. CST Dec. 30, 2011, by dialing (800) 406-7325. The replay access code is 4487035#. A replay of the webcast will also be available on the company's website at www.tortoiseadvisors.com through Dec. 15, 2012.
About Tortoise Capital Advisors, LLC
Tortoise Capital Advisors, LLC is an investment manager specializing in listed energy infrastructure investments. As of Nov. 30, 2011, the adviser had approximately $7.2 billion of assets under management in NYSE-listed closed-end investment companies, an open-end fund and other accounts. For more information, visit www.tortoiseadvisors.com.
Safe Harbor Statement
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
This press release contains certain statements that may include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, included herein are "forward-looking statements." Although the company and Tortoise Capital Advisors believe that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the company's reports that are filed with the Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required by law, the company and Tortoise Capital Advisors do not assume a duty to update this forward-looking statement.
Tortoise Capital Advisors, LLC
Pam Kearney, Investor Relations, (866) 362-9331, firstname.lastname@example.org